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Minimum Energy Efficiency Standards (MEES)

Minimum Energy Efficiency Standards (MEES)

What is the regulation Change?

It has been confirmed that from April 1st, 2018 will mark the start of the regulation changes for Energy Performance Certificates. The new Minimum Energy Efficient Standards (MEES) affects both the domestic and non-domestic sides in the private rented sector which in in turn effects a Landlords decision to let out a property. These new changes make it unlawful to rent out a property should they not meet the new EPC requirements.

The new Minimum Energy Efficient Standards for commercial properties states that any new lease or renewed property must reach a minimum performance of E. Currently, Commercial buildings have an energy efficiency rating that varies from A – G with G being the worst performing buildings. As of 1st April 2023, MEES will apply to new and renewal leases. With this new regulation in place, properties that do not meet the new minimum standard will should not be rented out and risk possible penalties.

Why has MEES been introduced?

MEES was introduced in 2016, where tenants could request energy efficient improvements to their properties.

The new minimum EPC regulation 2018 is simply to improve the energy efficiency of buildings across the U.K. It is in place to encourage owners of inefficient properties to do their bit in helping meet CO2 reduction targets and reducing reliance on fossil fuels.

What can you do?

The sooner you act the better. For property owners to prevent themselves from being affected by this new regulation change,

The government has recently estimated that around 18% of buildings across the U.K. will be affected by this, yet experts in the industry predict this figure could be significantly higher.

Another thing that can be done is looking at old leases and provisions such as rent reviews that might have been created or drafted without the thought of MEES.

Planning these Energy Efficiency works at the correct time is also crucial to ensure no money is lost or wasted for example when there is a void period in the building.

Solutions

We can check your original EPC certificate, the original EPC rating may have decreased since the changes made to building standards have changed considerably.

We can then provide a survey on your building to assess the current rating and provide advise on how to achieve the minimum rating if it falls short.

We would recommend you provide your property portfolio to us with the lease dates and current EPC ratings.

What if you do not achieve the Minimum E Rating

This can create huge problems, and no-one wants to be hit with penalties in place. The penalties for commercial properties can range from anywhere between £5,000 – £150,000.

ALL domestic tenants have the right to request energy efficiency improvements to their properties. This applies to domestic properties let under longer term assured and regulated tenancies. Landlords will be unable to refuse consent to a tenants request to make energy efficiency improvements.

1 April 2018

it will be unlawful to grant new leases of residential or commercial property with an EPC rating below an ‘E’

1 April 2020

The regulation will expand to apply to ALL residential privately rented property which are required to have an EPC.

1 April 2023

this will be extended to include ALL existing commercial leases.

We are working in conjunction with RowleySzilagy Surveyors for support on making upgrades to building to meet the minimum E rating.